[et_pb_section fb_built=”1″ _builder_version=”4.17.4″ _module_preset=”default” custom_padding=”3px|||||” da_disable_devices=”off|off|off” global_colors_info=”{}” theme_builder_area=”post_content” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row _builder_version=”4.17.4″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_column type=”4_4″ _builder_version=”4.17.4″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_text _builder_version=”4.17.4″ _module_preset=”default” hover_enabled=”0″ global_colors_info=”{}” theme_builder_area=”post_content” sticky_enabled=”0″]<\/p>\n
A down payment is not the only thing you need to have when closing on your loan. Closing costs are expenses you pay the lender for the various services they provide for the approval of your mortgage.<\/span><\/p>\n Let\u2019s dive into what closing costs are and how much you can expect to pay.<\/span><\/p>\n Closing costs are processing fees and charges that you pay to your lender to cover the costs of services rendered for creating and finalizing your loan. These cover your home appraisal, origination and underwriting of a mortgage loan, taxes, real estate commissions, insurance premiums, and record filings to name a few.<\/span><\/p>\n Closing costs are usually about 3% to 6% of the price of your home. This means that a loan worth $200,000 can cost you between $6,000 to $12,000 in closing costs.\u00a0<\/span><\/p>\n Buyers and sellers pay closing costs but the majority are usually shouldered by the buyer. You can negotiate with your seller to help cover closing costs.<\/span><\/p>\n Lenders will provide you with an itemized list of closing costs with your loan estimate. Here are some of the common fees and charges you can expect.<\/span><\/p>\n Lenders may use attorneys to prepare and review home purchase agreements and contracts.\u00a0<\/span><\/p>\n Lenders usually charge a fee to process your mortgage application.\u00a0<\/span><\/p>\n This will amount to about $15 to $30 to pull your credit from the three main reporting bureaus.<\/span><\/p>\n This fee covers the cost of moving the burden of HOA fees from seller to buyer. This ensures that the seller is up to date on their HOA dues.\u00a0<\/span><\/p>\n Lenders usually ask for a year\u2019s prepayment of homeowners insurance premium during closing.<\/span><\/p>\n This protects a lender if an ownership dispute or lien comes up that wasn\u2019t found during the title search. You pay a one-time fee to the title company upfront.\u00a0<\/span><\/p>\n Title insurance is optional but recommended. This policy protects you in case someone challenges your homeownership. Expect to pay 0.5% to 1% of the purchase price for your policy.<\/span><\/p>\n This fee covers the lender\u2019s administrative costs to process and underwrites your loan which is usually 1% of the loan amount.<\/span><\/p>\n If you put down less than 20% your lender may require a PMI which means you may pay for the first month\u2019s PMI payment upon closing.<\/span><\/p>\n There are instances where you need to check property loans and shared fences to ensure a property\u2019s boundaries. You pay a fee to a surveying company which costs around $300 to $500.<\/span><\/p>\n Closing costs can\u2019t be avoided when buying a home. If you want to know how to save on fees and other charges from closing costs get in touch with one of our loan experts to know more.<\/span><\/p>\n \u00a0<\/span><\/p>\n Give us a call or send us a message on our website for a free consultation.<\/span><\/p>\n \u00a0<\/span><\/p>\n <\/p>\n * Specific loan program availability and requirements may vary. Please get in touch with the mortgage advisor for more information.<\/strong><\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":" A down payment is not the only thing you need to have when closing on your loan. Closing costs are expenses you pay the lender for the various services they provide for the approval of your mortgage. Let\u2019s dive into what closing costs are and how much you can expect to pay. What Are Closing […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[14],"tags":[],"_links":{"self":[{"href":"https:\/\/ggmortgage.com\/wp-json\/wp\/v2\/posts\/1712"}],"collection":[{"href":"https:\/\/ggmortgage.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ggmortgage.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ggmortgage.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/ggmortgage.com\/wp-json\/wp\/v2\/comments?post=1712"}],"version-history":[{"count":2,"href":"https:\/\/ggmortgage.com\/wp-json\/wp\/v2\/posts\/1712\/revisions"}],"predecessor-version":[{"id":1715,"href":"https:\/\/ggmortgage.com\/wp-json\/wp\/v2\/posts\/1712\/revisions\/1715"}],"wp:attachment":[{"href":"https:\/\/ggmortgage.com\/wp-json\/wp\/v2\/media?parent=1712"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ggmortgage.com\/wp-json\/wp\/v2\/categories?post=1712"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ggmortgage.com\/wp-json\/wp\/v2\/tags?post=1712"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}What Are Closing Costs?<\/span><\/h2>\n
How Much Do You Pay For Closing Costs?<\/span><\/h2>\n
Types of Fees With Closing Costs<\/span><\/h2>\n
Attorney Fee<\/span><\/h3>\n
Application Fee<\/span><\/h3>\n
Credit Report Fee<\/span><\/h3>\n
Homeowners Association Transfer Fee<\/span><\/h3>\n
Homeowners Insurance<\/span><\/h3>\n
Lender\u2019s Title Insurance<\/span><\/h3>\n
Owner\u2019s Title Insurance<\/span><\/h3>\n
Origination Fee<\/span><\/h3>\n
PMI (Private Mortgage Insurance)<\/span><\/h3>\n
Survey Fee<\/span><\/h3>\n
Need Help With Closing Costs?<\/span><\/h2>\n